An infomercial is selling a thigh toner for either $99 or three monthly payments of $39 (in which the first payment occurs immediately and remaining payments occur at the end of the next two months). The net present value of the three-month installment plan, using hyperbolic discounting is ____ (assume that the monthly discount rate of 1% is discounted an additional 40% in this hyperbolic discounting).

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Hyperbolic discounting involves a higher discount rate for immediate costs. The first payment is $39, and the next two payments are discounted at a rate of 1% plus an additional 40% hyperbolic discounting. Calculating the present value of these payments results in approximately $95.55.

An Infomercial Is Selling a Thigh Toner for Either $99